Vietnam's startup scene is blossoming, securing a total sum of $2.1 billion in venture capital last year. The country's digital economy also hit $21 billion in 2021.
According to Binh Tran, co-founder of Ascend Vietnam Ventures, the country's burgeoning startup industry is on track to become the region's next innovation powerhouse.
Trạn told Bloomberg, "Venture capital for companies in Vietnam increased from $48 million in 2017 to $2.1 billion in 2021."
The country is drawing much attention from top-tier Silicon Valley venture capitalists such as Goodwater Capital LLC, Accel Partners LP, and Altos Ventures Management Inc, among others.
According to the Ministry of Information and Communications (MIC), the total number of digitally-led companies in Vietnam was roughly 64,000 in 2021, an increase of almost 5,600 from 2020.
Nguyen Trong Duong, deputy director of the Department of Enterprise Management under the MIC, noted that the digital economy in Vietnam accounts for about 8.2 per cent of GDP. The development potential of the internet and digital economy components is still quite large.
The digital economy in Vietnam is predicted to increase at a pace of 31 per cent in 2021, compared to the same time last year, hitting $21 billion in revenues.
This is mentioned in the e-Conomy SEA 2021 Report, which was released in late 2021 by Temasek, Google, and management consulting firm Bain & Company.
As a result, the Vietnamese internet economy is expected to reach $220 billion in gross merchandise volume by 2030, placing it second only to Indonesia in terms of GDP growth.
If this rate of development persists, Vietnam's GPD is predicted to reach $57 billion by 2025.
Last week, Vietnam's government has set targets to achieve a GDP per capita of $3,900 in 2022, with GDP growth of 6-6.5 per cent each year.